![]() In this climate of doom and gloom, what should be the right investment strategy? World Bank has also said that if even one of these factors escalates further, the global economy would officially be in a recession. For example, between last February and June, the heavy correction seen in Indian stock prices was due to these very factors. World Bank has stated three reasons behind the precipitating economic slowdown -– central bank interest rate hikes, high inflation, and the Russia-Ukraine conflict.īut most experts feel that the global markets – and especially the Indian market – have already reacted to these developments. The end result – you can buy low due to the imminent fear in the market, and sell high after the market corrects itself, which it almost always does. Secondly, a recessionary sentiment ensures that even bluechip equities are traded at relatively nominal rates, making them easily procurable for small-time retail investors. So, if your investment horizon is between 5 to 15 years, there is only one direction in which your corpus is heading – up, up and away, just like Superman! ![]() ![]() The strategy of buying when the economy is on tenterhooks is based on two main reasons.įirstly, the markets have always gone up over the long term. As per the Buffett school of thought, a recessionary environment is the ideal time to start investing, because everybody has a tendency to sell off and premium stocks are available on heavy discounts. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |